According to crypto sentiment platform Santiment, retail investors have been buying bitcoin after it broke below $70,000, but the whale activity suggests that the price could go even lower if past patterns repeat themselves.
“When Bitcoin reached $74,000, these stakeholders took profits,” Sentiment said in a report on Friday.
Sentiment explained that sharks — those holding between 10 and 10,000 Bitcoin (BTC) — “massed heavily” between February 23 and March 3, when Bitcoin was trading between $62,900 and $69,600.
Since Wednesday, when Bitcoin broke above $70,000 and reached $74,000, the group has unloaded about 66% of its recent purchases, Sentiment said. Meanwhile, retail investors – those with less than 0.01 Bitcoin – are increasing their positions.
Maybe the reforms are not over yet, says Sentiment
“When retail buys during whale sales, it usually indicates that the correction is not yet over,” Sentiment said. According to CoinMarketCap, Bitcoin is trading at $67,984 at the time of publication.
The drop in Bitcoin prices caused the Crypto Fear & Greed Index to drop 6 points, pushing it into “Extreme Fear” territory by 12 points on Saturday.
MN Trading Capital founder Michael van de Poppe echoed the sentiment, saying further declines are possible. “If Bitcoin doesn’t find support in this $67-68k area, then we’ll likely retest the lows for liquidity before going back up,” van de Poppe said in an X post on Friday.
Spot Bitcoin ETFs Post Biggest Outage Day in Three Weeks
The drop came as U.S. Bitcoin ETFs posted their biggest day of outflows since Feb. 12, with a total of $348.9 million in outflows across 11 ETF products, according to Farside.
related to: Trump’s National Cyber Strategy Pledges to Support Crypto and Blockchain
The price of Bitcoin fell to $60,000 on February 6th in the process of falling from the October high of $126,000 to show a modest recovery. Economist Timothy Peterson suggests that this level may be the baseline for now.
“This valuation level has always been the bottom for Bitcoin. There is about a 99.5% chance that it will remain above $60k,” Peterson said in an X post, referring to the Bitcoin Price to Metcalfe Value chart.
Magazine: The Debate About Bitcoin’s Four-Year Cycle Is Over: Benjamin Cowen
